Food products Emmi grows significantly faster than expected in financial year 2024
Emmi grew more strongly than expected in 2024: The Lucerne-based milk processor increased full-year sales by 2.4 percent under its own steam, exceeding both its own expectations and those of the financial community.
24.01.2025, 07:21
24.01.2025, 08:05
SDA
Emmi had targeted 1 to 2 percent growth, while analysts had expected 1.5 percent on average. In Swiss francs, sales rose by 2.5 percent to CHF 4.3 billion, as the manufacturer of caffé latte, cheese and yogurts announced on Friday.
In the first half of the year, the sale of the former subsidiary Gläserne Molkerei had reduced sales, but from October onwards, revenues from the newly acquired French desserts producer Mademoiselle Desserts more than compensated for the sale of Gläserne Molkerei. Emmi also made two further acquisitions last year: the Brazilian dairy Verde Campo and the Lucerne-based coffee roasting company Hochstrasser.
Coffee drinks and desserts gain traction
However, Emmi was also able to grow strongly on its own - and in particular increase the volumes sold. In the press release, the dairy group referred in particular to strong sales growth in the important markets of Brazil, Chile, Mexico and the USA, as well as in the strategic niches of ready-to-drink coffee, premium desserts and specialty cheeses.
By region, sales in Europe (+5.5%) and the Americas (+3.7%) rose sharply, while business in Switzerland remained more or less stable. In Switzerland, a lower milk price in the first half of the year had a negative impact, although this was more than offset by an increase in volumes sold over the year as a whole.
However, Emmi suffered a decline in sales in Tunisia due to the ongoing milk shortage and in the milk powder export business from Switzerland.
Takeover burdens EBIT with 5 to 8 million
The company will announce its profit figures for 2024 on February 26. Emmi once again confirmed that EBIT should increase to between CHF 295 and 315 million and that the net profit margin should be between 5.0 and 5.5 percent. The Group also specified that both key figures should be in the middle of the communicated range.
However, these targets do not yet include the effects of the acquisition of Mademoiselle Desserts. This is likely to reduce EBIT by CHF 5 to 8 million.
This is due to an accounting effect: inventories had to be revalued in the opening balance sheet of Mademoiselle Desserts, which led to a lower margin when these inventories were sold in the fourth quarter of 2024. The "pleasing operating results" of the new subsidiary, which were in line with internal planning, would not have been able to fully compensate for this.
Two new members of the Board of Directors
Emmi also announced two changes to the Board of Directors: Diana Strebel and Werner Weiss will not be standing for re-election at the next General Meeting on April 10. The Board of Directors is proposing Rebekka Iten and Christian Troxler as their successors.
Troxler is reportedly a self-employed master farmer and milk producer. He replaces Weiss as representative of the major shareholder ZMP, where he has been a member of the Board of Directors since 2023.
Iten is a proven international leader with expertise in Emmi's key target markets.
